Announces Quarterly Cash Dividend of $0.22 per
Share
Provides Second Quarter and Reaffirms 2016
Outlook
National CineMedia, Inc. (NASDAQ: NCMI) (the Company), the
managing member and owner of 43.6% of National CineMedia, LLC (NCM
LLC), the operator of the largest in-theatre digital media network
in North America, today announced consolidated results for the
fiscal first quarter ended March 31, 2016.
Total revenue for the first quarter ended March 31, 2016
decreased 0.9% to $76.2 million from $76.9 million for the
comparable quarter last year. Adjusted OIBDA decreased 13.4% to
$24.0 million for the first quarter of 2016 from $27.7 million for
the first quarter of 2015. Net loss for the first quarter of 2016
was $4.3 million, or a loss of $0.07 per diluted share compared to
a net loss of $9.0 million, or a loss of $0.15 per diluted share
for the first quarter of 2015. As adjusted to exclude costs
associated with the terminated merger with Screenvision, CEO
transition-related costs and amortization of terminated
derivatives, net loss for the first quarter of 2016 would have been
$0.05 per diluted share and net income for the first quarter of
2015 would have been $0.01 per diluted share, respectively.
Adjusted OIBDA and adjusted earnings per share are non-GAAP
measures. See the tables at the end of this release for the
reconciliations to the closest GAAP basis measurement.
The Company announced today that its Board of Directors has
authorized the Company’s regular quarterly cash dividend of $0.22
per share of common stock. The dividend will be paid on June 2,
2016 to stockholders of record on May 19, 2016. The Company intends
to pay a regular quarterly dividend for the foreseeable future at
the discretion of the Board of Directors consistent with the
Company’s intention to distribute over time a substantial portion
of its free cash flow in the form of dividends to its stockholders.
The declaration, payment, timing and amount of any future dividends
payable will be at the sole discretion of the Board of Directors
who will take into account general economic and advertising market
business conditions, the Company’s financial condition, available
cash, current and anticipated cash needs, and any other factors
that the Board of Directors considers relevant.
Commenting on the Company’s first quarter of 2016 operating
results, Andy England, NCM’s CEO said, “I am pleased that we were
able to deliver a solid first quarter performance, exceeding the
top end of our revenue guidance and achieving the top end of
Adjusted OIBDA guidance versus a record first quarter in 2015.” Mr.
England concluded, “While shifts in upfront commitments to the
second half of the year have subdued performance versus the first
half of 2015, we remain confident in our business for the full
year.”
2016 Outlook
For the second quarter of 2016, the Company expects total
revenue to be down 3% to 9% and Adjusted OIBDA is expected to be
down 7% to 17% from a record second quarter in 2015 that grew
revenue and Adjusted OIBDA 22% and 30%, respectively versus the
second quarter of 2014. The Company expects total revenue in the
range of $111.0 million to $118.0 million during the second quarter
of 2016, compared to total revenue for the second quarter of 2015
of $121.5 million and Adjusted OIBDA in the range of $56.0 million
to $63.0 million during the second quarter of 2016 compared to
Adjusted OIBDA for the second quarter of 2015 of $67.4 million.
For the full year 2016, the Company reaffirms its outlook of
total revenue to be up 4% to 6% and Adjusted OIBDA to be up 4% to
8% from the full year 2015. The Company expects total revenue in
the range of $463.0 million to $473.0 million for the full year
2016, compared to total revenue for the full year 2015 of $446.5
million and Adjusted OIBDA in the range of $238.0 million to $248.0
million for the full year 2016 compared to Adjusted OIBDA for the
full year 2015 of $229.9 million.
Supplemental Information
Integration payments due from Cinemark and AMC associated with
Rave Theatres for the quarter ended March 31, 2016 and April 2,
2015 were $0.1 million and $0.3 million, respectively. The
integration payments were recorded as a reduction of an intangible
asset.
Conference Call
The Company will host a conference call and audio webcast with
investors, analysts and other interested parties May 4, 2016 at
5:00 P.M. Eastern time. The live call can be accessed by dialing
1-877-407-9039 or for international participants 1-201-689-8470.
Participants should register at least 15 minutes prior to the
commencement of the call. Additionally, a live audio webcast will
be available to interested parties at www.ncm.com under the
Investor Relations section. Participants should allow at least 15
minutes prior to the commencement of the call to register, download
and install necessary audio software.
The replay of the conference call will be available until
midnight Eastern Time, May 18, 2016, by dialing 1-877-870-5176 or
for international participants 1-858-384-5517, and entering
conference ID 13635658.
About National CineMedia, Inc.
National CineMedia (NCM) is America’s Movie Network. As the #1
weekend network in the U.S., NCM helps brands get in front of the
movies that shape the national conversation. More than 700 million
moviegoers annually attend theatres that are currently under
contract to present NCM’s FirstLook pre-show in over 40 leading
national and regional theatre circuits including AMC Entertainment
Inc. (NYSE:AMC), Cinemark Holdings, Inc. (NYSE:CNK) and Regal
Entertainment Group (NYSE: RGC). NCM’s cinema advertising network
offers broad reach and unparalleled audience engagement with
approximately 20,400 screens in approximately 1,600 theaters in 187
Designated Market Areas® (49 of the top 50). NCM Digital goes
beyond the big screen, extending in-theatre campaigns into online
and mobile marketing programs to reach entertainment audiences.
National CineMedia, Inc. (NASDAQ:NCMI) owns a 43.6% interest in,
and is the managing member of, National CineMedia, LLC. For more
information, visit www.ncm.com.
Forward Looking Statements
This press release contains various forward-looking statements
that reflect management’s current expectations or beliefs regarding
future events, including statements providing guidance and
projections for the second quarter and full year 2016, the dividend
policy, network expansion, competition in the broader advertising
marketplace, improvements in our technology and analytic tools and
our beliefs about our network’s market position with advertisers.
Investors are cautioned that reliance on these forward-looking
statements involves risks and uncertainties. Although the Company
believes that the assumptions used in the forward looking
statements are reasonable, any of these assumptions could prove to
be inaccurate and, as a result, actual results could differ
materially from those expressed or implied in the forward looking
statements. The factors that could cause actual results to differ
materially from those expressed or implied in the forward-looking
statements are, among others, 1) level of theatre attendance; 2)
increased competition for advertising expenditures; 3)
technological changes and innovations; 4) economic conditions,
including the level of expenditures on cinema advertising; 5) our
ability to renew or replace expiring advertising and content
contracts; 6) our need for additional funding, risks and
uncertainties relating to our significant indebtedness; 7)
fluctuations in operating costs; 8) changes in interest rates; and
9) changes in accounting principles. In addition, the outlook
provided does not include the impact of any future unusual or
infrequent transactions; sales and acquisitions of operating assets
and investments; any future noncash impairments of intangible and
fixed assets; amounts related to litigation or the related impact
of taxes that may occur from time to time due to management
decisions and changing business circumstances. The Company is
currently unable to forecast precisely the timing and/or magnitude
of any such amounts or events. Please refer to the Company’s
Securities and Exchange Commission filings, including the “Risk
Factor” section of the Company’s Annual Report on Form 10-K for the
year ended December 31, 2015, for further information about these
and other risks.
NATIONAL CINEMEDIA,
INC.Condensed Consolidated Statements of Income
(Loss)Unaudited($ in millions, except per share
data)
Quarter Ended March 31, 2016 April
2, 2015 REVENUE: Advertising (including revenue from founding
members of $7.3 and $7.7,
respectively)
$ 76.2 $ 76.9 OPERATING EXPENSES: Advertising operating costs 5.0
5.8 Network costs 4.5 4.5 Theatre access fees—founding members 18.7
17.2 Selling and marketing costs 18.6 16.0 Merger-related costs —
33.4 Administrative and other costs 14.9 8.7 Depreciation and
amortization 8.7 8.0 Total 70.4 93.6
OPERATING INCOME (LOSS) 5.8 (16.7 ) NON-OPERATING
EXPENSES: Interest on borrowings 13.4 13.1 Interest income (0.6 )
(0.6 ) Accretion of interest on the discounted payable to founding
members under tax
receivable agreement
3.6 3.6 Amortization of terminated derivatives — 1.6 Other
non-operating expense — 0.1 Total 16.4
17.8 LOSS BEFORE INCOME TAXES (10.6 ) (34.5 ) Income tax benefit
(2.1 ) (4.3 ) CONSOLIDATED NET LOSS (8.5 ) (30.2 )
Less: Net loss attributable to noncontrolling interests (4.2
) (21.2 ) NET LOSS ATTRIBUTABLE TO NCM, INC. $ (4.3 ) $ (9.0
) NET LOSS PER NCM, INC. COMMON SHARE: Basic $ (0.07 ) $
(0.15 ) Diluted $ (0.07 ) $ (0.15 )
NATIONAL CINEMEDIA, INC.Selected
Condensed Balance Sheet DataUnaudited ($ in
millions)
As of March 31, 2016 December 31,
2015 Cash, cash equivalents and marketable securities $ 73.7 $
85.4 Receivables, net 97.6 148.9 Property and equipment, net 26.9
25.1 Total assets 1,037.6 1,073.7 Borrowings 955.0 936.0 Total
equity/(deficit) (173.3 ) (171.7 ) Total liabilities and equity
1,037.6 1,073.7
NATIONAL CINEMEDIA,
INC.Operating DataUnaudited
Quarter Ended March 31, 2016
April 2, 2015 Total Screens (100% Digital) at Period End
(1)(6) 20,377 20,080 Founding Member Screens at
Period End (2)(6) 16,892 16,443 DCN (Digital Content Network)
Screens at Period End (3)(6) 19,823 19,225
Quarter Ended (in millions)
March 31,
2016 April 2, 2015 Total Attendance for
Period (4)(6) 172.3 161.4 Founding Member Attendance for Period
(5)(6) 148.2 136.1 Capital Expenditures $ 4.0 $ 2.1
(1) Represents the total screens within
NCM LLC’s advertising network. (2) Represents the total founding
member screens. (3) Represents the total number of screens that are
connected to the Digital Content Network. (4) Represents the total
attendance within NCM LLC’s advertising network. (5) Represents the
total attendance within NCM LLC’s advertising network in theatres
operated by the founding members. (6) Excludes screens and
attendance associated with certain AMC Rave and Cinemark Rave
theatres for all periods presented.
NATIONAL CINEMEDIA,
INC.Operating DataUnaudited(In millions,
except advertising revenue per attendee, margin and per share
data)
Quarter Ended March 31, 2016 April
2, 2015 Revenue breakout: National advertising revenue $
50.2 $ 50.6 Local and regional advertising revenue 18.8
18.7 Total advertising revenue (excluding beverage) $ 69.0 $
69.3 Total revenue $ 76.2 $ 76.9
Per attendee
data: National advertising revenue per attendee $ 0.291 $ 0.314
Local and regional advertising revenue per attendee $ 0.109 $ 0.116
Total advertising revenue (excluding beverage) per attendee $ 0.400
$ 0.429 Total advertising revenue per attendee $ 0.442 $ 0.476
Total attendance (1) 172.3 161.4
Other operating
data: Operating income (loss) $ 5.8 $ (16.7 ) OIBDA (2) $ 14.5
$ (8.7 ) Adjusted OIBDA (2) $ 24.0 $ 27.7 Adjusted OIBDA margin (2)
31.5 % 36.0 % Loss per share – basic $ (0.07 ) $ (0.15 )
Loss per share – diluted $ (0.07 ) $ (0.15 ) Adjusted (loss)
income per share – basic (2) $ (0.05 ) $ 0.01 Adjusted (loss)
income per share – diluted (2) $ (0.05 ) $ 0.01
(1)
Represents the total attendance within NCM
LLC’s advertising network. Excludes screens and attendance
associated withcertain AMC Rave and Cinemark Rave theatres for all
periods presented.
(2)
OIBDA, Adjusted OIBDA, Adjusted OIBDA
margin and adjusted income (loss) per share are not financial
measures calculatedin accordance with GAAP in the United States.
See attached tables for the non-GAAP reconciliations.
NATIONAL CINEMEDIA, INC.Non-GAAP
ReconciliationsUnaudited
OIBDA, Adjusted OIBDA and Adjusted OIBDA Margin
Operating Income Before Depreciation and Amortization (“OIBDA”),
Adjusted OIBDA and Adjusted OIBDA margin are not financial measures
calculated in accordance with GAAP in the United States. OIBDA
represents net income (loss) attributable to NCM, Inc. plus the
effect of noncontrolling interests, income tax expense, interest
and other costs and depreciation and amortization expense. Adjusted
OIBDA excludes from OIBDA non-cash share based compensation costs,
the merger termination fee and related merger costs and Chief
Executive Officer transition costs. Adjusted OIBDA margin is
calculated by dividing Adjusted OIBDA by total revenue. These
non-GAAP financial measures are used by management to evaluate
operating performance, to forecast future results and as a basis
for compensation. The Company believes these are important
supplemental measures of operating performance because they
eliminate items that have less bearing on its operating performance
and so highlight trends in its core business that may not otherwise
be apparent when relying solely on GAAP financial measures. The
Company believes the presentation of these measures is relevant and
useful for investors because it enables them to view performance in
a manner similar to the method used by the Company’s management,
helps improve their ability to understand the Company’s operating
performance and makes it easier to compare the Company’s results
with other companies that may have different depreciation and
amortization policies, non-cash share based compensation programs,
levels of mergers and acquisitions, CEO turnover, interest rates or
debt levels or income tax rates. A limitation of these measures,
however, is that they exclude depreciation and amortization, which
represent a proxy for the periodic costs of certain capitalized
tangible and intangible assets used in generating revenues in the
Company’s business. In addition, Adjusted OIBDA has the limitation
of not reflecting the effect of the Company’s share based payment
costs, costs associated with the terminated merger with
Screenvision, or costs associated with the resignation of the
company’s Chief Executive Officer. OIBDA or Adjusted OIBDA should
not be regarded as an alternative to operating income, net income
or as indicators of operating performance, nor should they be
considered in isolation of, or as substitutes for financial
measures prepared in accordance with GAAP. The Company believes
that net income (loss) attributable to NCM, Inc. is the most
directly comparable GAAP financial measure to OIBDA. Because not
all companies use identical calculations, these non-GAAP
presentations may not be comparable to other similarly titled
measures of other companies, or calculations in the Company’s debt
agreement.
The following tables reconcile net loss attributable to NCM,
Inc. to OIBDA and Adjusted OIBDA for the periods presented (dollars
in millions):
Quarter Ended March 31, 2016 April
2, 2015 Net loss attributable to NCM, Inc. $ (4.3 ) $ (9.0 )
Net loss attributable to noncontrolling interests (4.2 ) (21.2 )
Income tax benefit (2.1 ) (4.3 ) Interest and other non-operating
costs 16.4 17.8 Depreciation and amortization 8.7 8.0
OIBDA $ 14.5 $ (8.7 ) Share-based compensation costs (1) 6.6 3.0
Merger-related costs (2) — 33.4 CEO transition costs (3) 2.9
— Adjusted OIBDA $ 24.0 $ 27.7 Total revenue $ 76.2 $ 76.9
Adjusted OIBDA margin 31.5 % 36.0 % Adjusted
OIBDA $ 24.0 $ 27.7 Rave theatres integration payments 0.1
0.3 Adjusted OIBDA after integration payments $ 24.1 $ 28.0
(1)
Share-based compensation costs are
included in network operations, selling and marketing and
administrative expensein the accompanying financial statements.
(2)
Merger-related costs primarily include the
merger termination fee and legal, accounting, advisory and other
professionalfees associated with the terminated merger with
Screenvision.
(3) Chief Executive Officer transition costs represent severance,
consulting and other costs.
Outlook (in millions)
Quarter Ending
June 30, 2016
Year Ending
December 29, 2016
NCM, Inc. NCM, Inc. Low
High Low High Consolidated net
income $ 22.2 $ 27.7 $ 96.3 $ 101.9 Income tax expense 3.7 4.8 16.1
17.2 Interest and other non-operating costs 16.5 16.6 66.5 68.5
Depreciation and amortization 9.1 9.2 36.5
37.5 OIBDA 51.5 58.3 215.4 225.1 Share-based compensation
costs (1) 4.4 4.5 19.6 19.8 CEO transition costs (2) 0.1
0.2 3.0 3.1 Adjusted OIBDA $ 56.0 $ 63.0 $
238.0 $ 248.0 Total revenue $ 111.0 $ 118.0 $ 463.0 $ 473.0
(1)
Share-based compensation costs are
included in network operations, selling and marketing and
administrative expensein the accompanying financial statements.
(2) Chief Executive Officer transition costs represent severance,
consulting and other costs.
Adjusted Net Income (Loss) and Earnings (Loss) per
Share
Adjusted net income (loss) and earnings (loss) per share are not
financial measures calculated in accordance with GAAP in the United
States. Adjusted net income (loss) and earnings (loss) per share
are calculated using reported net loss and loss per share and
exclude the amortization of terminated derivatives, merger-related
costs and CEO transition-related costs shown in the below table.
These non-GAAP financial measures are used by management as an
additional tool to evaluate operating performance. The Company
believes these are important supplemental measures of operating
performance because they eliminate items that have less bearing on
its operating performance and so highlight trends in its core
business that may not otherwise be apparent when relying solely on
GAAP financial measures. The Company believes the presentation of
these measures is relevant and useful for investors because it
enables them to view performance in a manner similar to a method
used by the Company’s management and helps improve their ability to
understand the Company’s operating performance. Adjusted net income
(loss) should not be regarded as an alternative to net loss and
should not be regarded as an alternative to earnings per share or
as indicators of operating performance, nor should they be
considered in isolation of, or as substitutes for financial
measures prepared in accordance with GAAP. The Company believes
that net loss and loss per share are the most directly comparable
GAAP financial measures. Because not all companies use identical
calculations, these presentations may not be comparable to other
similarly titled measures of other companies.
The following table reconciles net loss and loss per share as
reported to adjusted net (loss) income and (loss) earnings per
share excluding the amortization of terminated derivatives,
merger-related costs and CEO transition-related costs for the
periods presented (dollars in millions):
Quarter Ended March 31, 2016 April
2, 2015 Net loss as reported $ (4.3 ) $ (9.0 )
Amortization of terminated derivatives — 1.6 Merger-related costs
(1) — 33.4 CEO transition costs (2) 2.9 — Stock-based compensation
expense for modified equity awards (3) 2.3 — Effect of
noncontrolling interests (56.4% and 54.9%, respectively) (2.9 )
(19.2 ) Effect of provision for income taxes (38% effective rate)
(0.9 ) (6.0 ) Net effect of adjusting items
1.4 9.8 Net (loss) income excluding adjusting items $ (2.9 )
$ 0.8 Weighted Average Shares Outstanding as reported Basic
59,610,864 58,888,674 Diluted 59,610,864 58,888,674 Weighted
Average Shares Outstanding as adjusted Basic 59,610,864 58,888,674
Diluted 59,610,864 59,224,785 Basic loss per share as
reported $ (0.07 ) $ (0.15 ) Net effect of adjusting items
0.02 0.16 Basic (loss) income per share excluding adjusting
items $ (0.05 ) $ 0.01 Diluted loss per share as reported $
(0.07 ) $ (0.15 ) Net effect of adjusting items 0.02
0.16 Diluted (loss) income per share excluding adjusting items $
(0.05 ) $ 0.01 (1)
Merger-related costs primarily include the
merger termination payment and legal, accounting, advisory and
other professional feesassociated with the terminated merger with
Screenvision.
(2) Chief Executive Officer transition costs represent severance,
consulting and other costs. (3)
Consists of non-cash stock-based
compensation expense associated with modifications to the former
CEO’s equity awards pursuantto his Separation and General Release
Agreement.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160504006519/en/
National CineMedia, Inc.INVESTOR CONTACT:David
Oddo, 800-844-0935investors@ncm.comorMEDIA CONTACT:Amy Jane
Finnerty, 212-931-8117amy.finnerty@ncm.com
National CineMedia (NASDAQ:NCMI)
Historical Stock Chart
From Mar 2024 to Apr 2024
National CineMedia (NASDAQ:NCMI)
Historical Stock Chart
From Apr 2023 to Apr 2024